Intangible Asset Paper 1

1

Which of the following is not considered to be an intangible asset?






2

A recognized intangible asset is amortized over its useful life






3

Hansen, Inc., purchased a patent at the beginning of Year 1 for $22,100 that was to be amortized over 17 years. On July 1 of Year 8, Hansen incurred legal costs of $11,400 to successfully defend the patent. The amount of amortization expense that Hansen should record for Year 8 is






4

Which of the following costs associated with an internally developed patent should be capitalized? Research and Patent Development Registration






5

On July 1, Broadstreet Corporation acquired a patent on its new manufacturing process, which streamlines its production operation. The cost of the patent was $17,000, and Broadstreet expects that the useful life of the new process will be 10 years, although the legal life of the patent is 17 years. Broadstreet is a calendar-year corporation and is preparing its December 31 Statement of Financial Position. At which amount should the patent be reported at December 31 of the year of acquisition?






6

Which of the following expenditures qualifies for asset capitalization?






7

During the year just ended, Jase Co. incurred research and development costs of $136,000 in its laboratories relating to a patent that was granted on July 1. Costs of registering the patent equaled $34,000. The patent’s legal life is 20 years, and its estimated economic life is 10 years. In its December 31 balance sheet, what amount should Jase report for the patent, net of accumulated amortization?






8

A purchased patent has a remaining legal life of 15 years. It should be






9

Under IFRS, an entity that acquires an intangible asset may use the revaluation model for subsequent measurement only if






10

Legal fees incurred by a company in defending its patent rights should be capitalized when the outcome of litigation is Successful Unsuccessful






Result

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